EURUSD and GBPUSD: Euro triggers a new bullish impulse

• During the Asian session, EURUSD dropped to the 1.04500 level.
• GBPUSD found its support this morning at the 1.21000 level.

EURUSD chart analysis

During the Asian session, EURUSD dropped to the 1.04500 level. The pair manages to find support in that place. After that, we see a bullish impulse that moves us toward the 1.05000 resistance level. To continue the bullish option, we need to reach the previous high at 1.03500. Moving above, the euro would improve its prospects for a continuation of the bullish option.

If we manage to move above, we will have a new chance to attack the December high at 1.05950 and test the 1.06000 level. Potential higher targets are 1.06500 and 1.07000 levels. For a bearish option, we need a negative consolidation and a pullback of the EURUSD below the 1.04500 level. After that, we would look for the next support at the 1.04000 level. The impossibility of staying at that level could bring us down to the lower targets of 1.03500 and 1.03000.

GBPUSD chart analysis

GBPUSD found its support this morning at the 1.21000 level. Since then, we have seen a positive consolidation and recovery above the 1.21500 level. If the current consolidation continues, we could see a recovery to the 1.22000 level. The next target is yesterday’s high at the 1.22700 level. If we reach that level and then move above it, in that case, we will see the formation of a new two-day high.

Potential higher targets are 1.23000 and 1.23500, the current December high. We need a negative consolidation and a pullback of GBPUSD below this morning’s low for a bearish option. By moving below, we would have confirmation for the continuation of the bearish option. Potential lower targets are 1.21000 and 1.20000 levels.